INDIA: AS SOME STATES GO TO POLLS, DEMAND FOR BICYCLES GOES UP

NEW DELHI (NNN-PTI) -- With some Indian states, including Punjab and Uttar Pradesh, going to polls in few months, demand for bicycles has suddenly gone up on the back of state-sponsored social welfare programmes, mainly girls education, a leading manufacturer said Wednesday.

Country's largest bicycle manufacturer Hero Cycles has its hands full catering to the orders from such states, particularly Uttar Pradesh and Punjab.

From Punjab alone, the company recently got an order for 1 lakh (1 lakh=100,000) cycles, company's Managing Director (Works) S K Rai told PTI.

Recently, the Karnataka government had floated a tender for 12 lakh cycles, of which his company had been asked to supply 3.20 lakh cycles, he said.

"Even though there is a surge in demand, but this demand is not the right demand as it is not durable consumer demand," he said.

With many state governments encouraging girls to study and giving cycles among other things as incentives, Rai said this was also creating huge demand, particularly from states such as Bihar and Uttar Pradesh.

"Cycle has become a wheel of social change," said Rai, who informed that 20 per cent of the demand came from government sector alone.

Rai also sees exports further growing from 1.2 lakh units per year, "with Chinese currency becoming very strong and cost of labour going up".

Africa is the biggest export market for the company at present, he informed.

Hero Cycles CMD O P Munjal said the company was also making a conscious effort to promote the spirit and practice of cycling.

"Bicycle, which is environment-friendly and good for health, is the need of the hour. Our cities are choked with traffic and we must take to using cycles more often to save our planet," Munjal said.

Meanwhile, Rai also said that the craze for multi-speed bicycles and Dirt Terrain Bikes was also growing among the nation's youth.

"This segment is growing by 30 per cent, even though the base is small," he said, adding last year the company sold 1.2 lakh units in the price range of Rs 3,500 to Rs 8,000. -- NNN-PTI